Mark Zuckerberg's Metaverse plans are designed around the long haul, burning through cash to one-day make profit. Many have been concerned regarding the company haemorrhaging money on the creation of its virtual world platform, and those worries have been proven right.
Zuckerberg's Metaverse is burning money
Via Meta's Q1 Financial Report, the development of Zuckerberg's Metaverse continues to be a massive money pit. Across the development of its virtual platform, Meta revealed that the metaverse is continuing to lose billions of dollars.
In Q1 2022, Facebook Reality Labs, the division that helms The Metaverse, brought in a revenue of $695 million. However, over that same period, Facebook Reality Labs managed to stay deep in the red with losses of $2.96 billion.
Meta has seemingly failed to reign in metaverse spending over the past year. At the end of 2021, Metaverse had already lost billions on development of its virtual world. With virtual and augmented reality hardware and software, losses equated to the metaverse came up to $10 billion.
Nevertheless, Meta is still going all hands on deck for its metaverse development, despite pushback from employees. Whether the ship sinks or not, Zuckerberg’s Metaverse will be the primary focus of the social media company.
Promises for 2030
Mark Zuckerberg isn't planning for the metaverse to be finished anytime soon. Despite the company's hype cycle beginning last year, Meta doesn't expect the project to be finished until the start of the next decade.
Despite massive losses, Meta CEO Mark Zuckerberg claimed that the next decade will see the company building towards the future. The CEO claimed that Meta is “laying the groundwork for a very successful 2030s.”
If losses continue the way that they're going, Meta will lose around $100 billion on its metaverse project. However, due to the company's massive size, it likely won't be hugely altered by losses that would completely crush hundreds of other businesses.